Series 63 practice questionmediumNotice Filings for Investment Companies
An open-end mutual fund registered under the Investment Company Act of 1940 plans to offer shares in State Y. Under the USA and NSMIA, which action may State Y require of the issuer?
- ASubmit a notice filing and pay a filing fee✓ Correct answer
- BRegister the mutual fund shares with the state
- CObtain state approval for advertising materials
- DRegister each share class separately
Explanation
Why A — Submit a notice filing and pay a filing fee
Federally registered investment companies are considered covered securities, so states may require notice filings and payment of fees but not full registration (USA Section 18(b)(2)). States cannot require registration (B, D) or advertising pre-approval (C).
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